1. C has the following investments it bought during 2012. C still owns the stocks as of 12-31-14.

Original               Fair Value          

Cost        12-31-12       12-31-13       12-31-14

Jungle stock $20,000       $21,000       $24,000       $27,000

Regal stock $40,000       $41,000       $35,000       $42,000

Evan stock $14,000       $15,000       $17,000       $13,000

Leia stock $36,000       $37,000       $55,000

None of the stocks pay C a dividend. On 04-14-14, C sold all of the Leia stock for $54,000.

Assume C only prepares AJEs every December 31. Prepare the entries C should make on:

1. December 31, 2012.
2. December 31, 2013.
3. April 14, 2014.
4. December 31, 2014.

How does one determine a mark-up on a product or service?

Regarding Capital Expenditure Decisions, how does a manager go about evaluating an investment proposal? (from Ch 16 of Managerial Accounting: Creating Value in a Dynamic Business Environment (10th Edition)

Discuss the three common methods for allocating joint product cost.

[LO 8.2 & 8.3] Juno Corporation had ordinary taxable income of $167,000 in the current year before consideration of any of the following property transactions. It sold two blocks of stock held for investment. One yielded a short-term capital gain of $8,000 and the other a long-term capital loss of $14,000. In addition, Juno sold four pieces of machinery for $30,000. It purchased the machines three years ago for $80,000 and claimed $35,000 of depreciation deductions. Juno also sold a building for $400,000 that it had purchased fifteen years ago for $390,000. The depreciation deductions up to the date of sale for the building were $108,000.

1. Determine the amount and character of each gain or loss from the property transactions and Juno Corporation’s taxable income for the current year.
2. How would your answers to (a) change if Juno were a single individual with no dependents and $14,000 of itemized deductions instead of a corporation?
3. How would your answers to (b) change if Juno has $550,000 of ordinary taxable income?

Could you give me an answer fast you can please. Thank You.!

Learning Objectives: CHAPTER 5

1. Account for short-term investments
2. Apply GAAP for proper revenue recognition
3. Account for and control accounts receivable
4. Evaluate collectability using the allowance for uncollectible accounts
5. Account for notes receivable
6. Show how to speed up cash flow from receivables
7. Evaluate liquidity using three new ratios

EXAMPLE OF WHAT I'M LOOKING FOR:

One thing I found challenging was the credits and debits concept from chapter two and matching them up, (common stock would be a cash debit and stock credit). Once I got it down it was one of those "why didn't it make sense to me sooner" moments but at the time I didn't understand and would switch things. How I approached the chapter was really to make sure I understood all the terms, ie notes payable, accounts receivable, etc. Being able to understand them without going back to the textbook made the process a bit faster and overall easier. Another thing was really taking advantage of the internet and that if there was something in the textbook I didn't understand, looking it up on Google and going through different websites and tutorials. While going through the problems I made sure to take as thorough notes as I could with information that I knew would help me moving forward, targeting the problems that were difficult for me. Being able to go back and read through something that was written in a way that made the most sense to me as an individual definitely proved helpful. I also Skyped a friend who is currently enrolled in a financial accounting class and we would work through problems together.

55 What are the functions of management in an organization? Select one: a. Directing, controlling, and decision making b. Planning, controlling, and decision making c. Directing, planning, and decision making d. Planning, directing, and controlling

11 Cash provided by operating activities Select one: a. may be larger than net income. b. summarizes cash flows relating to the purchase and sale of long-lived assets. c. equals the change in cash for the year d. decreases when long-term debt is repaid

Revise your worksheet to reflect these updated assumptions then answer the questions that follow.

You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year end.

After reviewing the data, you note the 'not yet due' category is overstated by 20%, while the 'Over 90 days' category is understated by 20%, (this error also caused the AR balance on the schedule to not equal the amount of Accounts Receivable on the balance sheet).

Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this account is a credit, the accountant hadn't noticed the issue.

Required:
1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable and the Allowance for Uncollectible Accounts based on the above information?

2. Prepare the journal entry to adjust the Allowance for Uncollectible Accounts, using your corrected data. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

3. Which statement is true regarding the effect of the Allowance account being shown incorrectly as a credit rather than as a debit balance in the original account analysis?

• The error caused the journal entry to require a credit to Bad Debts Expense rather than a debit.

• Correcting the error increased the amount of Bad Debt Expense recorded for the period.

• Correcting the error decreased the amount of Bad Debt Expense recorded for the period.

• The Allowance account and the adjustment were not affected by the original misstatement, as it was only an estimate.

Dan loves game shows, He has been a guest on many game shows including Ellen. On the last game show, The Price Is Right, he was invited to participate. As a result, he won a new car valued at $48,000. He questions whether this prize is taxable or is it a non-taxable gift. He is concerned about the value of the car and the associated tax that he may have to pay. Dan emailed you, his tax accountant. He wants you to tell him if he is required to report the car as income, and if he is required to report it as income, how much would be reported?

Please answer this question fully & correctly and I will give you a 5 star review.

The DeVille Company reported pretax accounting income on its income statement as follows:

Included in the income of 2021 was an installment sale of property in the amount of $70,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $28,000 in 2022, $35,000 in 2023, and $7,000 in 2024.

Included in the 2023 income was $30,000 interest from investments in municipal governmental bonds.

The enacted tax rate for 2021 and 2022 was 40%, but during 2022, new tax legislation was passed reducing the tax rate to 25% for the years 2023 and beyond.

Required:
Prepare the year-end journal entries to record income taxes for the years 2021–2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The Foundational 15 [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, LO8-10]

[The following information applies to the questions displayed below.]

Morganton Company makes one product and it provided the following information to help prepare the master budget:

a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,700, 18,000, 20,000, and 21,000 units, respectively. All sales are on credit.

b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.

c. The ending finished goods inventory equals 30% of the following month’s unit sales.

d. The ending raw materials inventory equals 20% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.

e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.

f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.

g. The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000.

1. If 101,500 pounds of raw materials are needed to meet production in August, what is the estimated cost of raw materials purchases for July?

2. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $129,120.

3. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?

4. What is the estimated total selling and administrative expense for July?

A machine can be purchased for $160,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value.

Compute the machine’s payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.)

Year       Net Income        Depreciation      Net Cash Flow   Cumulative Cash Flow   

0                                              (160,000)             $(160,000)          

1              $10,700                                                                

2              26,700                                  

3              57,000                                  

4              40,100                                  

5              106,800                                                

Payback period =                             

Scenario: You are a loan officer for White Sands Bank of Taos. Paul Jason, president of P. Jason Corporation, has just left your office. He is interested in an 8-year loan to expand the company's operations. The borrowed funds would be used to purchase new equipment. As evidence of the company's debt-worthiness, Jason provided you with facts (available in the attached Scenario Worksheet). Jason is a very insistent (some would say pushy) man. When you told him you would need additional information before making your decision, he acted offended and said, "What more could you possibly want to know?" You responded you would , at minimum, need complete, audited financial statements.

Develop a minimum 700-word examination of the financial statements and include the following:

• Explain why you would want the financial statements to be audited.
• Discuss the implications of the ratios provided for the lending decision you are to make. That is, does the information paint a favorable picture? Are these ratios relevant to the decision? State why or why not.
• Evaluate trends in the performance of P. Jason Corporation. Identify each performance measure as favorable or unfavorable and explain the significance of each.
• List three other ratios you would want to calculate for P. Jason Corporation, and in your own words explain in detail why you would use each.
• As the loan officer, what else would you do to gain a better understanding of Paul Jason's, and the Corporation's financial picture and why?
• Based on your analysis of P. Jason Corporation, will you recommend approval for the requested loan? Provide specific details to support your decision.

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below:

Required:

1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales.

2. The president believes that a $6,500 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $89,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income?

3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?

4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,200?

5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $57,000 each month.

a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales.

b. Assume that the company expects to sell 20,900 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.)

c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,900)?